Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the information provided below to prepare the Statement of Financial Position of Trent Limited as at 31 July 2023. The notes to the financial

Use the information provided below to prepare the Statement of Financial Position of Trent Limited as at 31 July 2023. The notes to the financial statements are not required. INFORMATION TRENT LTD Extract of PRE-ADJUSTMENT TRIAL BALANCE AS AT 31 JULY 2023 Balance Sheet Accounts Section Ordinary share capital (200 000 shares) Retained earnings Land and buildings Vehicles (cost) Equipment (cost) Accumulated depreciation on vehicles Accumulated depreciation on equipment Debentures (12% p.a.; Maturity date 31 July 2028) Investment (25 000 shares in ABC Limited) Trading inventory Debtors control Provision for bad debts Bank Creditors control South African Revenue Services: Company tax Adjustments and additional information Debit (R) 3 904 100 1 400 000 900 000 500 000 1 090 000 360 000 30 000 287 000 484 000 140 000 Credit (R) 4 000 000 589 200 510 000 397 000 1 700 000 The profit after tax for the year ended 31 July 2023 amounted to R392 100. The following adjustments were made to the income and expenses but not to the balance sheet accounts: 1. A physical stocktake on 31 July 2023 revealed the following: 1.1 Trading inventory on hand amounted to R1 050 000. 1.2 Stationery unused amounted to R2 000. 2. Rent for August 2023 was received and recorded on 31 July 2023, R14 000. 3. Dividends of 70 cents per share are due from ABC Limited. 4. Commission on sales of R30 000 is owed to the salespersons. 5. Equipment, cost price R120 000, was purchased on credit on 01 July 2023 but no entry has been made for this. Depreciation on equipment is calculated at 15% p.a. on cost and on vehicles at 20% p.a. on the diminishing balance. 6. The bank statement was received after the trial balance was prepared and it reflected bank charges of R1 800. 7. The provision for bad debts must be adjusted to 5% of debtors. 8. Two of the directors of the company are owed remuneration of R20 000 each. 9. Based on the profit for the year, an amount of R30 000 is still owed to South African Revenue Services for company tax. 10. The directors declared a final dividend of 12 cents per share. The interim dividend amounted to R100 000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

IT Auditing Using Controls To Protect Information Assets

Authors: Chris Davis, Mike Schiller, Kevin Wheeler

3rd Edition

1260453227, 978-1260453225

More Books

Students also viewed these Accounting questions

Question

Find Ak, if 0.1 0.4 -0.1 A= -0.15 0.6 -0.05 -0.2 0.4 0.2

Answered: 1 week ago

Question

BPR always involves automation. Group of answer choices True False

Answered: 1 week ago

Question

consider how qualitative data can add value to your research;

Answered: 1 week ago

Question

consider the use of electronically obtained qualitative data;

Answered: 1 week ago